MIRA INFORM REPORT

Report Date :

28.06.2013

IDENTIFICATION DETAILS

Name :	RSAL STEEL PRIVATE LIMITED
Registered Office :	611, Tulsiani Chambers, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.12.2010
Com. Reg. No.:	11-211581
Capital Investment / Paid-up Capital :	Rs. 507.987 Millions
CIN No.: [Company Identification No.]	U28990MH2010PTC211581
TAN No.: [Tax Deduction & Collection Account No.]	MUMR27684G
PAN No.: [Permanent Account No.]	AAFCR1288M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cold Rolled Steel Coils and Sheets.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (35)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2420000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a relatively new company having a moderate track record. It has achieved better turnover in its first year of operation [2012]. The capital appears to be good. Reserves are improving. The profit margin appears low. As per the of March 212, ‘Ruchi Strips and Alloys Limited’ is found to be the holding company of the subject. Mr. Ravindra Gupta from the commercial department confirmed that the subject company has recently taken over the business of ‘Ruchi Strips and Alloys Limited’ in 2013. Trade relations of the subject are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Ravindra Gupta
Designation :	Commercial Department
Contact No.:	91-22-22851303
Date :	27.06.2013

LOCATIONS

Registered Office :	611, Tulsiani Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22851303
Fax No.:	91-22-22823177
E-Mail :	rsalsteel@ruchigroup.com rspl@ruchigroup.com
Website :	www.rsalsteel.com
Location :	Owned
Factory :	501, Mahakosh House, 7/5, South Tukoganj, Nath Mandir Road, Indore – 452001, Madhya Pradesh, India
Tel. No.:	91-731-2518124-26
Fax No.:	91-731-2518127

DIRECTORS

AS ON 26.09.2012

Name :	Mr. Umesh Shahra
Designation :	Director
Address :	28, Old Palasia, A.B. Road, Indore – 452018, Madhya Pradesh, India
Date of Birth/Age :	17.06.1963
Date of Appointment :	29.12.2010
DIN No.:	00061312
Name :	Mr. Vijay Kumar Mahajan
Designation :	Director
Address :	Flat No. 212, Block B/2, Lokbharti Complex, Marol Maroshi Road, Mumbai – 400059, Maharashtra, India
Date of Birth/Age :	01.02.1952
Date of Appointment :	29.12.2010
DIN No.:	01367496
Name :	Mr. Arvind Mishra
Designation :	Whole-time director
Address :	44, Pink City Scheme No. 94 Extension, Ring Road, Indore – 452018, Madhya Pradesh, India
Date of Birth/Age :	01.07.1960
Date of Appointment :	29.12.2010
PAN No.:	ACVPM3557B
DIN No.:	02129733

KEY EXECUTIVES

Name :	Mr. Ravindra Gupta
Designation :	Commercial Department
Name :	Mr. Mayank Bahadur Singh Bhadauria
Designation :	Secretary
Address :	B-4, Sonal Apartment, 20-21, New Agrawal, Indore – 452001, Madhya Pradesh, India
Date of Birth/Age :	26.04.1988
Date of Appointment :	01.10.2011
PAN No.:	BBQPB1431A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2012

Names of Equity Shareholders	No. of Shares
Ruchi Strips and Alloys Limited	9999
Umesh Shahra	1
Total	10000

Names of Preference Shareholders	No. of Shares
Ruchi Strips and Alloys Limited	50788700
Total	50788700

AS ON 26.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Cold Rolled Steel Coils and Sheets.
Exports :
Products :	CR Coils
Countries :	¯ Middle East
Imports :
Products :	HR Coils
Countries :	¯ China
Terms :
Selling :	Credit and Depend
Purchasing :	Credit and Depend

GENERAL INFORMATION

Customers :

Others

No. of Employees :

Information declined by the management

Bankers :

Dena Bank, Navlakha Branch, Navlakha Chouraha, A B Road, Indore - 452001, Madhya Pradesh, India

Facilities :

Secured Loans	31.03.2012 [13 Months]	28.02.2011
	(Rs. In Millions)
Rupee term loans banks secured	270.671	0.000
Working capital loans banks secured	341.674	0.000
Total	612.345	0.000

Banking Relations :	--
Auditors :
Name :	Arun Maheshwari and Company Chartered Accountants
Address :	8/9, Mahesh Nagar, Indore, Madhya Pradesh, India
Income-tax PAN of auditor or auditor's firm :	ACRPM6560G
Entities where key management personnel or relative of key management personnel have significant influence :	¯ Suyash Trust ¯ Indian Steel Corporation Limited [U27100MH2004PLC144559] ¯ NICPL Infralinks Private Limited
Holding Company :	¯ Ruchi Strips and Alloys Limited [L27100MH1987PLC142326]

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs. 10/- each	Rs. 10.000 Millions
59,000,000	5% Non Cumulative Redeemable Preference Shares	Rs. 10/- each	Rs. 590.000 Millions
	Total		Rs. 600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,000	Equity Shares	Rs. 10/- each	Rs. 0.100 Million
50,788,700	5% Non Cumulative Redeemable Preference Shares	Rs. 10/- each	Rs. 507.887 Millions
	Total		Rs. 507.987 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012 [13 Months]	28.02.2011
SHAREHOLDERS FUNDS
1] Share Capital		507.987	0.100
2] Share Application Money		65.950	0.000
3] Reserves & Surplus		31.596	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		605.533	0.100
LOAN FUNDS
1] Secured Loans		612.345	0.000
2] Unsecured Loans		27.581	0.000
TOTAL BORROWING		639.926	0.000
DEFERRED TAX LIABILITIES		8.289	0.000
TOTAL		1253.748	0.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		467.427	0.000
Capital work-in-progress		144.851	0.000
INVESTMENT		0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1878.239	0.000
	Sundry Debtors	702.317	0.000
	Cash & Bank Balances	195.466	0.100
	Other Current Assets	106.049	0.000
	Loans & Advances	84.990	0.000
Total Current Assets		2967.061	0.100
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1931.835	0.037
	Other Current Liabilities	343.554	0.000
	Provisions	50.202	0.000
Total Current Liabilities		2325.591	0.037
Net Current Assets		641.470	0.063
MISCELLANEOUS EXPENSES		0.000	0.037
TOTAL		1253.748	0.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012 [13 Months]
	SALES
		Income
		Other Income
		TOTAL	6235.910
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	6186.383
	PROFIT BEFORE TAX		49.527
Less	TAX		17.931
	PROFIT AFTER TAX		31.596
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	89.858
	Earnings Per Share (Rs.)		3159.64

KEY RATIOS

PARTICULARS		31.03.2012 [13 Months]	28.02.2011
PAT / Total Income	(%)	0.51	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.44	NA
Return on Investment (ROI) (PBT/Networth)		0.08	NA
Debt Equity Ratio (Total Debt/Networth)		1.06	0.00
Current Ratio (Current Asset/Current Liability)		1.28	2.70

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012 [13 Months]	28.02.2011
	(Rs. in Millions)
Creditors due others	1931.835	0.037

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last one year	Yes
12]	Profitability for last one year	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS

Unsecured Loans	31.03.2012 [13 Months]	28.02.2011
	(Rs. In Millions)
Interest accrued due other debt unsecured	27.581	0.000
Total	27.581	0.000

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U28990MH2010PTC211581
Name of the company	RSAL STEEL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	611, Tulsiani Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India Email: ruchistrips@ruchigroup.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Dena Bank, Navlakha Branch, Navlakha Chouraha, A B Road, Indore - 452001, Madhya Pradesh, India Email: navlak@denabank.co.in
Nature of description of the instrument creating or modifying the charge	Join Deed of Hypothecation and Working Capital consortium agreement dated 28th March 2012.
Date of instrument Creating the charge	28/03/2012
Amount secured by the charge	2,414,800,000.00
Brief particulars of the principal terms an conditions and extent and operation of the charge	Terms of Repayment On Demand Extent and Operation of the charge First charge on pari passu basis on all current assets of the Borrower, namely, stock of Row Materials, semi finished and Finished Goods, Stores and Spares not relating to Plant and Machinery (Consumable Stores and Spares), Bills Receivables and Book Debts and all other movable (excluding such movable as may be permitted by the Dena Bank Consortium in their discretion from time to time), both present and future more particularly describe in second schedule of Join Deed of Hypothecation.
Short particulars of the property charged	First charge on pari passu basis on all current assets of the Borrower, namely, stock of Row Materials, semi finished and Finished Goods, Stores and Spares not relating to Plant and Machinery (Consumable Stores and Spares), Bills Receivables and Book Debts and all other movable (excluding such movable as may be permitted by the Dena Bank Consortium in their discretion from time to time), both present and future situated at Village Sejwaya, Ghatabillod, District Dhar to secure the working capital facilities granted by Dena Bank consortium.

CONTINGENT LIABILITIES:

Particulars	31.03.2012 [13 Months] (Rs. in Millions)
Contingent Liabilities not provided for
a) Outstanding Bank guarantees	10.874
b) Disputed liabilities not acknowledged as debts	43.829
c) Estimated amount of contracts remaining to be executed on capital account (net of advances)	122.400
c) Estimated liability of customs duty which may arise if export obligation is not fulfilled	30.796

FIXED ASSETS:

¯ Land

¯ Building

¯ Factory building

¯ Plant and machinery

¯ Office equipments

¯ Furniture and fixtures

¯ Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 60.59
UK Pound	1	Rs. 92.92
Euro	1	Rs. 78.94

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		35

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.